The European Steel Association (EUROFER) has released a joint statement with Wind Europe regarding the upcoming EU Critical Raw Materials Act.
According to the statement, EUROFER calls on the European Union to include scrap in the critical raw materials list as only a level playing field in accessing critical raw materials will ensure the long-term competitiveness of European manufacturing and avoid carbon leakage.
The associations stated that scrap is subject to scarcity. Despite its critical importance for a successful decarbonization of the steel sector and its value chain, scrap is the most exported waste stream from the EU to third countries. Furthermore, most destination countries do not have environmental and social standards equivalent to those in Europe. This paradoxical situation risks jeopardizing both Europe’s strategic autonomy and its climate goals.
“The Critical Raw Materials Act must deliver targeted market measures boosting local, sustainable supply chains and offering incentives to invest at least comparable to the US Inflation Reduction Act. In particular, the EU steel industry needs access to both fossil-free energy such as wind, and key raw materials such as scrap, nickel and manganese to supply green steel to its value chain. In addition, we invite the Commission to formulate a proposal focusing on strategic green transition goods like steel and wind in the context of the new Green Deal Industrial Plan,” Axel Eggert, director general of the European Steel Association (EUROFER), said.